Dunelm reports strong sales growth
Homewares retailer Dunelm has reported that like-for-like sales in its stores rose by 3.5% in its final quarter after the company benefited from a strong summer clearance sale performance.
There was also continued growth in Dunelm’s ‘Made to Measure’ curtains and blinds service and its furniture department.
In the 13 weeks to 27 June, total sales grew by 12.1% to £200.1 million, with combined like-for-like sales growth for the stores and home delivery of 5.8%.
Home delivery sales increased by 43.4% during the quarter and represented 6.8% of sales compared to 5.4% in the prior year. Over the financial year as a whole, home delivery sales represented 6.1% of total sales.
Taking into account the fourth quarter performance and increased levels of revenue investment during the full year, Dunelm said it expects pre-tax profit for the 52 weeks to 27 June 2015 to be within the range of between £119 million and £123 million and for the 53 weeks ended 4 July 2015, within the range of £121 million to £125 million.
Total sales for the statutory financial period of 53 weeks to 4 July 2015 were £835.8 million.
Dunelm’s pipeline of legally committed new store opportunities stands at eight, of which at least two are expected to open in the first half of the new financial year. The pipeline includes one committed freehold acquisition which is conditional on planning consent.
Will Adderley, Dunelm chief executive, said: “We have continued to achieve good like-for-like growth in the final quarter of our financial year, across physical stores as well as our home delivery channel. I would like to thank all colleagues for their efforts in delivering this strong result.
“With a newly strengthened senior team, a recently upgraded website, a sound pipeline of new stores and an ongoing programme of capital and revenue investments in place, I am confident that we will continue to deliver further growth across all our channels going forward.”
Dunelm has also announced that it has appointed Keith Down as chief financial officer. Due to join the company in December, Down will succeed David Stead who will retire after a short handover period, having served on the board since 2003.
Down currently holds the same position at The Go-Ahead Group and has previously held a number of senior finance roles in convenience retailing and at Tesco where he was commercial finance director from 2005 to 2007. He was then appointed chief financial officer of JD Wetherspoon, before joining Go-Ahead in 2011. Down is currently a non-executive director at Topps Tiles.
Andy Harrison, chairman of Dunelm, said: “Keith brings us a wealth of experience of financial management in retail and other consumer-facing industries. His drive, experience and character will make a significant contribution to our growth, and will provide high quality support to John Browett who, as recently announced, will assume the role of chief executive in January 2016 and who has been fully involved in Keith’s appointment.”
